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The World’s Top 10 Economies

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The inequitable distribution of income is present at the global level where the nominal gross domestic product (GDP) of the top 10 economies adds up to over 66% of the world’s economy, and the top 15 economies add up to over 75%. The remaining 172 countries constitute only 25% of the world’s economy.

Here’s the list of the top 10 economies based on the criteria of GDP, current prices (US dollars) which is simply known as nominal GDP. The rankings differ if the same list is prepared using the GDP based on purchasing-power-parity (PPP).

As a general rule, developed countries have a smaller gap between their nominal GDP (i.e., current prices) and GDP based on PPP.

The difference is greater in developing countries, which tend to have a higher GDP when valued on purchasing-power-parity basis. This list is based on IMF data, which is updated twice annually.

This list was compiled by Investopedia and last updated on July 18, 2016.

  1. United States

The U.S. economy is the largest in the world in terms of nominal GDP (measured at current prices in US dollars). The $17.95 trillion US economy is approximately 24.5% of the gross world product. The United States is an economic superpower that is highly advanced in terms of technology and infrastructure and has abundant natural resources. However, the U.S. economy loses its spot as the number one economy by a slight margin to China when measured in terms of GDP based on PPP. In these terms, China’s GDP is $19.4 trillion and the U.S. GDP is $17.95 trillion. However, the U.S. is way ahead of China in terms of GDP per capita (PPP) – approximately $55,805 in the U.S. versus $14,107 in China.

  1. China

China has transformed itself from a centrally planned closed economy in the 1970’s to a manufacturing and exporting hub over the years. The Chinese economy is propelled by an equal contribution from manufacturing and services (45% each, approximately) with a 10% contribution by the agricultural sector. The Chinese economy overtook the U.S. economy in terms of GDP based on PPP. However, the difference between the economies in terms of nominal GDP remains large. China is currently a $10.98 trillion economy and has been growing at around 7% in the recent years, although that growth is starting to slow down.

  1. Japan

Japan’s economy ranks third in terms of nominal GDP, while it slips to fourth spot when comparing the GDP by purchasing-power-parity. The economy has been facing hard times since 2008, when it was first showed recessionary symptoms. Though the government’s stimulus packages have helped the economy recover a bit, the massive earthquake in 2011 gave the fragile economy another jolt. Economic growth has hovered between 0.5–2% in recent times, but is forecasted to stay below 1% during the next six years. The nominal GDP of Japan is $4.12 trillion, its GDP (PPP) is $4.83 trillion, and its GDP (PPP) per capita is $38,054.

  1. Germany

Germany is Europe’s largest and strongest economy. On the world scale, it ranks as the fourth largest economy in terms of nominal GDP. Germany’s economy is known for its exports of machinery, vehicles, household equipment, and chemicals. Germany has a skilled labor force, but the economy faces demographic challenges like most European nations. The size of its nominal GDP is $3.36 trillion, while its GDP in terms of purchasing-power-parity is $3.84 trillion. Germany’s GDP (PPP) per capita is $46,893, and the economy has moved at a moderate pace of 1-2% in recent years and is forecasted to stay that way.

  1. United Kingdom

The United Kingdom, with a $2.85 trillion GDP, is the world’s fifth largest. The economy of the UK is primarily driven by services, as the sector contributes more than 75% of the GDP. With agriculture contributing a minimal 1%, manufacturing is the second most important contributor to GDP. Although agriculture is not a major contributor to GDP, 60% of its food needs is produced domestically, even though less than 2% of its labor force is employed in the sector. After the referendum in June 2016 when voters decided to leave the European Union, economic prospects for the UK are highly uncertain, and the UK and France may swap places. The country will operate under EU regulations and trade agreements for two years after the formal announcement of an exit to the European Council, in which time officials will work on a new trade agreement. Economists have estimated that a Brexit could result in a loss of anywhere from 2.2-9.5% of GDP, depending on the trade agreements replacing the current single market structure.

  1. France

France, the most visited country in the world, is the sixth largest economy with a nominal GDP of $2.42 trillion. Its GDP in terms of PPP is around $2.65 trillion. France has a low poverty rate and high standard of living, which is reflected in its GDP (PPP) per capita of $41,180. The country is among the top exporters and importers in the world. France has experienced a slowdown over the past few years and the government is under immense pressure to rekindle the economy, as well as combat high unemployment which reached 10.35% in 2015. According to IMF forecasts the country’s GDP growth rate is expected to rise over the next six years, and unemployment is expected to go down.

  1. India

India ranks third in GDP in terms of purchasing-power-parity ($7.97 trillion), while its nominal GDP ($2.09 trillion) puts it in a seventh place. The country’s high population drags its GDP (PPP) per capita down to $6,162. India’s GDP is still dependent on agriculture (17%), compared to western countries. However, the services sector has picked up in recent years and now accounts for 57% of the GDP, while industry contributes 26%. The economy’s strength lies in a limited dependence on exports, high saving rates, favourable demographics, and a rising middle class. India recently overtook China as the fastest growing large economy.

  1. Italy

Italy’s $1.16 trillion economy is the world’s eighth largest in terms of nominal GDP. Italy is among the prominent economies of the eurozone, but it has been impacted by the debt crisis in the region. The economy suffers from a huge public debt estimated to be about 135.8% of GDP, and its banking system is close to a collapse and in need of a bail-out/bail-in. The economy is also facing high unemployment, but saw a positive economic growth in 2015 for the first time since 2011. The government is working on various measures to boost the economy that has contracted in recent years. The GDP measured in purchasing-power-parity for the economy is estimated at $2.17 trillion, while its per capita GDP (PPP) is $35,708.

  1. Brazil

Brazil with its $1.77 trillion economy, it is the ninth largest economy by nominal GDP. The Brazilian economy has developed services, manufacturing, and agricultural sectors with each sector contributing around 68%, 26%, and 6% respectively. Brazil is one of the BRIC countries, and was projected to continue to be one of the fastest growing economies in the world. However, the recession in 2015 caused Brazil to go from seventh to ninth place in the world economies ranking, with a negative growth rate of 3.8%. The IMF does not expect positive growth until 2018, and the unemployment rate is expected to grow over 3% – to 10.4% – over the same time period. The Brazilian GDP measured in purchasing-power-parity is $3.19 trillion, while its GDP per capita (PPP) is $15,614.

  1. Canada

Canada pushed Russia off the list with a nominal GDP of $1.55 trillion. Canada has a highly service oriented economy, and has had solid growth in manufacturing as well as in the oil and petroleum sector since the Second World War. However, the country is very exposed to commodity prices, and the drop in oil prices kept the economy from growing more than 1.2% in 2015 (down from 2.5% the previous year). The GDP measured in purchasing-power parity is $1.6 trillion, and the GDP per capita (PPP) is $45,553.

The Bottom Line

Some other economies that are a part of the “trillion-dollar” club and have the potential to make it to the top 10 going ahead are South Korea ($1.38 trillion), Russia ($1.32 trillion), Australia ($1.22 trillion), Spain ($1.2 trillion), and Mexico ($1.14 trillion).

Source: Investopedia

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

Economy

Naira Heads into Easter Break With 0.2% Gain, Trades N1,599/$1

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By Adedapo Adesanya

The value of the Naira improved against the United States Dollar by 0.2 per cent or N3.23 at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, April 17, trading at N1,599.93/$1 compared with the preceding day’s N1,603.16/$1.

Also, the local currency appreciated against the British Pound Sterling in the spot market during the trading day by N1.73 to finish at N2,120.24/£1 versus Wednesday’s closing value of N2,121.97/£1 and gained 48 Kobo against the Euro to settle at N1,817.69/€1, in contrast to the N1,818.17/€1 it was exchanged in the midweek session.

At the parallel market, the Nigerian currency traded flat against the US Dollar yesterday at N1,620/$1.

The Nigerian Naira has been volatile this week despite moves by the Central Bank of Nigeria (CBN) to strengthen the domestic currency, which is facing forex pressures.

Meanwhile, the cryptocurrency market was bearish on Thursday amid reports that President Donald Trump of the United States has been privately discussing firing US Federal Reserve chairman, Mr Jerome Powell, raising concerns about market stability and central bank independence.

Mr Powell had earlier criticized Mr Trump’s tariffs policy, saying that it would likely result in a slowing economy and rising prices —otherwise known as “stagflation.”

In his remarks, Mr Powell made clear his larger focus for now would be on prices, suggesting tighter central bank policy than otherwise thought.

President Trump, who nominated the Federal Reserve’s chairman  during his first term and was given a second four-year term by President Joe Biden has expressed his displeasure with Mr Powell since retaking the White House.

Mr Powell, though, who is set to remain at the helm of the US central bank until May 2026, has repeatedly stated his determination to finish his term and suggested the president has no standing to fire him.

Ripple (XRP) slumped by 1.8 per cent to $2.05, Dogecoin (DOGE) depreciated by 1.7 per cent to $0.1544, Ethereum (ETH) dropped 1.5 per cent to close at $1,579.44, Cardano (ADA) went down by 1.2 per cent to $0.6133, Bitcoin (BTC) dipped by 0.4 per cent to $84,471.19, Solana (SOL) slid by 0.3 per cent to $134.00, and Litecoin (LTC) declined by 0.2 per cent to $75.26.

However, Binance Coin (BNB) gained 0.8 per cent to trade at $587.78, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.

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Economy

Crude Oil up 3% on Possible US-Europe Trade Deal Signals

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By Adedapo Adesanya

Crude oil went up by more than 3 per cent on Thursday, supported by hopes for a trade deal between the United States and the European Union and new US sanctions to curb Iranian oil exports, which continued to elevate supply concerns.

During the session, Brent crude futures gained $2.11 or 3.2 per cent to sell at $67.96 per barrel and the US West Texas Intermediate (WTI) crude futures appreciated by $2.21 or 3.54 per cent to close at $64.68 a barrel.

For the week, both Brent and WTI gained 5 per cent, their first weekly gain in three weeks. Thursday is the last settlement day of the week ahead of the Easter holidays.

US President Donald Trump and Italian Prime Minister Giorgia Meloni met in the US and expressed optimism about resolving trade tensions that have strained US-European relations.

President Trump said he was 100 per cent certain of an eventual trade deal with Europe, the most confidence he has expressed on those negotiations since rattling world markets with his tariff announcements.

“Of course there will be a trade deal, very much. They want to make one very much. And we are going to make a trade deal. I fully expect it. And it will be a fair deal,” he said.

The 27-nation European Union faces 25 per cent import tariffs on steel, aluminum and cars, and broader tariffs on almost all other goods under President Trump’s policy to hit countries he says impose high barriers to US imports.

The American President has offered to make trade deals with as many nations as possible to limit the impact of the tariffs.

Also supporting prices are sanctions issued by Trump’s administration on Wednesday, including against a China-based oil refinery, ramp up pressure on Iran amid talks on the country’s nuclear programme.

The US also issued additional sanctions on several companies and vessels it said were responsible for facilitating Iranian oil shipments to China as part of Iran’s shadow fleet.

The Organisation of the Petroleum Exporting Countries and its allies, OPEC+, has also provided updates and reassurance to the market, stating that they remain in control with flexibility to cut production if needed.

The cartel said on Wednesday it had received updated plans for Iraq, Kazakhstan and other countries to make further output cuts to compensate for pumping above quotas.

Worries remain as OPEC, the International Energy Agency (IEA) and several banks, including Goldman Sachs and JPMorgan, cut forecasts on oil prices and demand growth this week over tariffs and possible retaliation.

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Economy

FAAC Disbursement for April 2025 Drops to N1.578trn

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By Aduragbemi Omiyale

The amount shared by the federal government, the 36 state governments and the 774 local government areas of the federation from the Federation Account Allocation Committee (FAAC) in April 2025 from the revenue generated last month declined by N100 billion, Business Post reports.

This month, FAAC disbursed about N1.578 trillion to the three tiers of government, lower than the N1.678 billion distributed in March 2025.

In a communiqué by the Director of Press and Public Relations in the Office of the Accountant-General of the Federation (OAGF), Bawa Mokwa, it was stated that the N1.578 trillion comprised statutory revenue of N931.325 billion, Value Added Tax (VAT) revenue of N593.750 billion, Electronic Money Transfer Levy (EMTL) revenue of N24.971 billion, and an Exchange Difference revenue of N28.711 billion.

The money was shared after deducting N85.376 billion as cost of collection and N747.180 billion as total transfers, interventions and refunds from the total gross revenue of N2.411 trillion generated by the nation last month.

It was explained that gross statutory revenue of N1.718 trillion was received for March 2025 versus N1.653 trillion received in February 2025, and gross revenue of N637.618 billion was available from VAT compared with N654.456 billion a month earlier.

As for the distribution of the N1.578 trillion, FAAC said it gave the federal government N528.696 billion, the states N530.448 billion, the local councils N387.002 billion, and the benefiting states N132.611 billion as 13 per cent of mineral revenue.

It disclosed that on the N931.325 billion statutory revenue, the federal government received N422.485 billion, the state governments got N214.290 billion, the LGAs were given N165.209 billion, and the oil-producing states went away with N129.341 billion.

Further, from the N593.750 billion VAT revenue, the national government got N89.063 billion, the state governments received N296.875 billion, and the local councils got N207.813 billion.

In addition, from the N24.971 billion EMTL, the central government was given N3.746 billion, the state governments got N12.485 billion, and LGAs shared N8.740 billion.

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